Question
Can I get some assistance? Projecting Revenues, Cost of Goods Sold, and Inventory. Use the following data for Walgreens in Years 11 and 12 to
Can I get some assistance?
Projecting Revenues, Cost of Goods Sold, and Inventory.
Use the following data for Walgreens in Years 11 and 12 to project revenues, cost of goods
sold, and inventory for Year +1. Assume that Walgreen's Year +1 revenue growth rate,
gross profit margin, and inventory turnover will be identical to Year 12. Project the average
inventory balance in Year +1 and use it to compute the implied ending inventory balance.
Walgreens (data in millions)
Year 11 Year 12
Sales Revenues $ 53,762 $59,034
Cost of Goods Sold $ 38,518 $42,391
Ending Inventory $ 6,791 $ 7,249
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